CITY
OF DULUTH JOBZ SUB-ZONE RESOLUTION OF APPROVAL TO AUTHORIZE TAX
EXEMPTIONS.

BY
COUNCILOR GILBERT:

WHEREAS, job
creation, business development, and individual wealth growth in the city
of Duluth, Minnesota, have been less than the national and state averages;
and

WHEREAS, the
resulting effects of such lagging job creation, business development and
individual wealth growth have harmed and are forecasted to continue to
harm the economy of the city of Duluth; and

WHEREAS, the
job opportunity building zone (JOBZ) program created in Minnesota Session
Laws 2003, First Special Session, Chapter 21, Article 1, allows for the
formation of tax free zones; and

WHEREAS, an
application for tax free zone designation in the city of Duluth was being
prepared for submission to the Minnesota department of employment and
economic development via the Arrowhead Regional Development Commission,
zone administrator (ARDC);

NOW, THEREFORE,
BE IT RESOLVED, that the city of Duluth, at its meeting held on the 12th
day of April, 2004, upon careful consideration and review, approves the
specific areas as set forth below for tax free zones, approves of the
use of tax exemptions and tax credits within the designated zones (subject
to proper review and approval by the other appropriate taxing authorities
within the zones), and encourages the Minnesota department of employment
and economic development to approve the tax free zone application being
submitted by the ARDC:

Subzone
Number

Subzone
Name

Acres
per Zone

96

Duluth
Airport Authority

9.14

97

Airpark

95.78

98

StoraEnso

13.9

98.1

Box
Factory

2.2

98.2

Polaris
Wilbert Vault

4.1

99

Atlas
Cement Plant

62.0

100

DMIR
Railway Co.

40.0

101

Clyde-Oneota

18.7

102

Rice's
Point

26.5

103

Union
Pacific Railyard

8.0

104

Duluth
Harbor

70.8

BE
IT FURTHER RESOLVED, that city of Duluth agrees to provide all of the
local tax exemptions and credits required and provided for under the job
opportunity building zones (JOBZ) legislation and agrees to forego the
tax benefits resulting from the local and state tax exemptions and credits
provided under the job opportunity building zones (JOBZ) legislation.

STATEMENT OF PURPOSE: In
October 2003, the Duluth City Council adopted Resolution 03-0731R, which
authorized ARDC to act as JOBZ zone sponsor and administrator and to make
program commitments on behalf of the city of Duluth. ARDC has made the
Northeast Minnesota Regional JOBZ Application to the Minnesota Department
of Employment and Economic Development for sub-zones throughout the city.
The Council further authorized ARDC to commit the city to provide all
of the local tax exemptions and credits required and provided for under
the Job Opportunity Building Zones (JOBZ) Legislation.

The Minnesota Department
of Employment and Economic Development, in December of 2003, approved
the Northeast Minnesota Regional JOBZ Application for 4,031 acres within
46 sub-zones. The city of Duluth was approved for 351.12 acres.

This resolution sets forth
the designation of those 351.12 acres within the City of Duluth.